Mistubishi will freeze new model launches in Europe indefinitely as part of a wide-reaching overhaul of its global operations to cut costs.
Under the 'Small but Beautiful' banner, the Japanese manufacturer plans to reduce its fixed costs by 20% over the next two years. It will shift to a business structure centred on Asia and "improve operating profit by downsizing low-profit businesses”.
The firm will focus its resources on the South-East Asian market, where it currently has a 6.4% market share, compared with just 1.0% in Europe and 0.9% in North America. Its operating profit in the region last year was 63.6 billion yen (£469.6 million), compared to just 12.8bn yen (£94.5m) across all other global markets.
A planned “freezing of the introduction of new products in Europe” means upcoming models such as the next-generation L200 pick-up truck, Outlander SUV and Mirage supermini are unlikely to be sold here.
A Mitsubishi UK spokesman was unable to say for how long this situation will last but said that the situation is “evolving and changing rapidly”.
Mitsubishi plans to achieve “sustainable growth” from the end of 2022 by consolidating investment into core regions and products. Changes in its home market include shifting production of its Pajero SUV from Sakahogi to Okazaki, closing unproductive dealerships and promoting its sharing and subscription business.
The spokesman told Autocar that it's too early to say what the plans mean for UK dealerships but that they're “still selling cars for the foreseeable future”.
However, the new model freeze means current models are unlikely to be replaced when they become non-compliant with EU emissions regulations, suggesting Mitsubishi will gradually withdraw from the European market.
Mitsubishi UK is an independent business and the sole distributor of the brand’s models in the country. It's considering other options but plans to continue to support customers with an ongoing aftersales parts and servicing offering.
Takao Kato, representative executive officer and CEO of the Mitsubishi Motors Corporation, said: “We will shift our strategy from all-round expansion to selection and concentration. First of all, we will complete our structural reforms and further strengthen our competitive areas – ultimately to build a corporate structure that can surely generate profits during this mid-term period." Further details on what this means for the struggling Renault-Nissan-Mitsubishi Alliance are unclear, but Mitsubishi has confirmed plans to continue introducing “cutting-edge models leveraging the Alliance partners’ technologies”. As part of its future models preview, the firm listed an electric kei car that it's co-developing with Nissan for launch after 2022.
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catnip
I think the same thing will
I think the same thing will (sadly) happen with Suzuki: The model range is getting less and less, and it makes you wonder how long the re-badged Toyota models will last on sale.
The Apprentice
catnip wrote:
There are 2 vehicles I am interested in but the recent new versions don't have an auto choice so I can't buy one, a couple of other possibilities don't do auto's with the engine I want either.
Your right, its getting harder and harder to find what you want.
The Apprentice
dealers delight...
I am sure Mitsubishi dealers will be 'delighted' by this! stabbed in the back..
As a small brand here the dealers had to cope with shell shock when they went from selling a few quirky vehicles and pickups to builders - into the crazy success the PHEV bought, they were just not ready for a large fleet customer base. To their credit, the ones I used did in time step up substantially, although the experience was never near as slick as you get at many other brands, but often refreshingly simple and honest. All the fluff and bluster that goes with just a simple service from some other brands is too much, do I really need an online video of my oil change or follow up calls to check its all well (who wouldn't go straight back if the car was faulty!). None of that nonsense with Mitsubishi.
ianp55
Mitsubishi To Quit Europe??
Mitsubishi seems to been in decline for the past couple of decades,it's overseas manufacturing plants have been closed in Australia(2009),Europe(2012) and USA(2015) so something is going seriously wrong .I'd suspect that if they do stay in Europe that they will be rebadged Nissans so perhaps the ASX & Qashqai lines will be merged likewise the Outlander and X-Trail,the pick-up's L200 & Navarra are also another target for removing duplication as well. Although Mitsubitshi's output in vehicles has largely pedestrian they did produce tough reliable vehicles and that the company's possible departure from the European market will further reduce choice for drivers
Ski Kid
just avoid Mitsubishi,Subaru and Suzuki and alos Honda soon
I can't see them selling cars in the Uk in particular due to right hand drive and even Europe in the short term the same thing goes for Honda when they leave the uk will shortly follow the demise of Swindon production.They will lose a lot on depreciation,insurance go up due to parts etc.
artill
Europe is a very unfriendly
Europe is a very unfriendly place to sell cars if they are not your major marketplace. The Focus on CO2 here is far more than the rest of the world. Why would a maker with small volume go to the expence of engineering cars to sell here when they can sell their stuff far more easily and profitably in other parts of the world.
Suzuki, and Subaru to follow them out of Europe soon, followed by Honda. Probably leaving just Toyota selling Japanese cars in the EU, and Nissan selling a few rebadged Renaults
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